LG Display made a public statement on Wednesday that its company and subsidiaries made an operating profit of $470 million (523 billion KRW) in the first quarter.
After recording an operating loss of $320 million (361.9 billion KRW) in the first quarter last year, LG Display and its subsidiaries were able to turn things around this first quarter. Their sales, which were $6.2 billion (6.8828 trillion KRW), increased by 46% compared to the first quarter last year. Their net profit was calculated to be $240 million (265.8 billion KRW).
Although first quarter is normally a slow season for LG Display, the company explained that there had been steady demands for large panels that are used for TVs and IT devices due to the ‘home economy’ trend from the COVID-19 pandemic.
It also added that the fact that an upward trend of the LCD panel prices was higher than its expectation due to high demands and a supply and demand issue within the industry also helped with the overall performance.
IT panel sales were responsible for 40% of entire sales while TV panel sales and mobile device panel sales were responsible for 31% and 29% respectively.
Particularly, the company’s OLED TV business recorded a similar number of shipments as the fourth quarter last year, when it was a peak season, despite first quarter normally being a slow season.
LG Display explained that its performance in the premium market was largely successful as the time that consumers stay in their homes has become longer and consumers’ points of view towards value of TVs has changed.
The company looks to sell about 8 million OLED TV panels this year.
Regarding its mobile business, it has decided to focus on solidifying its groundwork for making a turnaround by preparing for mass-production of new products based on increased stability in yield and quality.
Regarding its IT business, it plans to solidify its leadership in the market based on its strong production capability and close relationships with customers and continue to create profits.
Seo Dong-hee, who is the CFO at LG Display, said that OLED’s differentiated value is starting to be recognized as consumers’ lifestyle has changed due to COVID-19 and that LG Display will act smartly and quickly towards opportunities while examining the market closely as COVID-19 vaccines become more readily available.
Staff Reporter Byun, Sanggeun | firstname.lastname@example.org